Hyderabad Industries Ltd. v. Idac Trading (Pvt) Ltd., and Two Others – sllr 1995 volume 2 page 304

In the case between Hyderabad Industries Ltd. and IDAC Trading (Pvt) Ltd., the court addressed the issue of whether an interim injunction could be maintained to restrain payment under an irrevocable Letter of Credit that had been unilaterally amended by the buyer after shipment. It was held that the post-shipment amendment, which required goods to conform to SLS 9, was imposed in bad faith and could not be fulfilled by the supplier. The principle reaffirmed was that the banker’s obligation under an irrevocable Letter of Credit is absolute, absent fraud, and disputes between the contracting parties do not affect this obligation. The decision relied on established legal precedents concerning irrevocable Letters of Credit and Letters of Indemnity, emphasizing that injunctive relief should not